Episode Details

Being a property investor is simple, isn't it? Just buy a property, then sit back, collect the rents, and fund your retirement.

If only it was as easy as that.

Granted, investing in property is a simple concept, but the execution is a different story. I've often said property investment is simple, but not easy.

The rules are simple if you know them, but the execution is more complicated.

And that's what we're going to talk about in today's episode. Initially, I'm going to give you six tips to help you get on top of the property ladder. Then I'll talk with Brett Warren about tips that he would have liked to know when he was first investing. Then, in my last segment, I'll share some money tips.

6 strategies to get to the top of the property ladder

1. Invest in your knowledge before you start investing in bricks and mortar

Learn from others who've not only achieved what you want to achieve, but who've maintained their wealth over a long period of time.

Surround yourself with like-minded people and get a mentor who will not only inspire and challenge you, but can also give you some perspective.

2. Marry your investment plans with your investment capital

Remember that all booms come to an end and, like in the past, this new property cycle will peak.

So, while enjoying the current phase, make sure you're financially prepared for the market as it changes.

3. Use your portfolio to reduce your risk

Strategic investors look forward to the best of times but protect their portfolios for the tough times that will inevitably come.

Rather than gearing to the max, they take a more prudent approach by building an emergency buffer.

They also own the type of property that will be in continuous strong demand by owner-occupiers.

4. Do the due diligence before you do the deal

Sophisticated investors have an investment plan that they adhere to and carefully evaluate any potential investment opportunity in light of their long-term goals.

They know that this makes their investment decisions less emotional and their results are more consistent and predictable.

5. Keep your sights set on your goals

While most investors buy a property and hold it for the long term, strategic investors regularly review their investment portfolio's performance in light of their long-term goals.

Questions to ask when reviewing your portfolio's performance:

• Is this property performing to my expectations?
• Is this property likely to outperform the market?
• If this property were for sale today would I buy it again?
• Does this property still fit in with my overall plan?

Treat your property like a business and evaluate your assets dispassionately and take appropriate action.

6. Remember that in real estate, less is often more

Concentrate on getting the best deals for your investment goals, not the most deals.

When it comes down to it, capital growth is key in building wealth through real estate and properties that outperform the long-term averages always come at a price.

Lessons and Success Tips with Brett Warren

Location does 80% of the heavy lifting

Successful investors look for locations that have a proven track record of strong capital growth which will outperform over the longer term because of their demographics.

Choose capital growth over cash flow.

Most of your assets when you retire will be your tax free capital growth – the increase in value of your home and your investment properties – not money you have saved or rent that you've collected or superannuation you've put away.

Success comes from